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‘Ministry not in favour of concessions for Apple manufacturing unit’

‘Ministry not in favour of concessions for Apple manufacturing unit’

  • The Commerce Ministry does not favour granting concessions to American multinational tech major Apple for establishing manufacturing unit in India for products including iPhones and iPads.
  • This is because other companies have not sought similar concessions — including easing labelling and local sourcing norms as well as reducing excise and import duties — for starting manufacturing in the country, and therefore the government will not be able to relax rules only for Apple.
  • Over 40 companies are manufacturing mobile phones in the country.
  • India is among the largest smartphone markets in the world, and the Californiaheadquartered Apple is looking to expand its market-share in the segment in the country from the current level of around two per cent.
  • However, Apple only operates in premium smart phone category, where its share is much higher.
  • While setting up manufacturing plant in India — to cater to the local market and even for exports — will help cut costs given the factors including relatively lower labour costs (than say in China), duty and other concessions are expected to push up that advantage further for Apple.
  • However, the Indian government is keen that Apple does substantial value addition in the country and ensure that local supply chains grow as well — thereby generating employment, increasing manufacturing and exports.
  • Currently, there is the Modified Special Incentive Package Scheme to promote manufacturing of electronic items in India. There are incentives for investments in Special Economic Zones.
  • The government was looking into Apple’s proposal seeking exemption from 30 per cent local sourcing norms on FDI in single brand retail.

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Chavan Suyash Yeshwant Rao (AIR -56, CSE 2017) from Maharashtra talks about his journey to Civil Services Examination with Success Guru AK Mishra in the latest episode of Success Speaks on Doordarshan.
He has done his MBBS from a government college in Aurangabad & MD from Maulana Azad University in Delhi. When the idea of giving the UPSC exam strikes him, he wanted to clear it in the maiden attempt. And with his determination, willpower, and dedication he cleared UPSC Exam in his First Attempt only with All India Rank 56 and his desired Indian Foreign Services.